IHTA84/S121 (1)(b) requires the property to be occupied (
IHTM24070) for the purposes of
agriculture (
IHTM24060) at the time of the
subsequent transfer by either the subsequent transferor or the
personal representatives of the earlier transferor. You should seek
advice on any case where the earlier transferor was life tenant of
the property unless, at the time of the subsequent transfer, it is
occupied by the subsequent transferor for the purposes of
agriculture (and so this condition is clearly satisfied).
If the parties claim that the occupation requirement in
IHTA84/S121 (1)(b) is satisfied where the occupier is a company
controlled by ‘that person or by the personal representative
of the transferor in relation to the earlier transfer’ you
should seek advice.
The occupation requirement in IHTA84/S121 (1)(b) relates to
the property which was (or would have been) eligible for
agricultural relief on the earlier death. However S121 (1)(c) and
(2) make it clear that the section can apply to replacement
property (
IHTM24110). Accordingly, where there is
replacement property at the time of the subsequent transfer, the
occupation requirement in S121(1)(b) should be applied to the
replacement property.
